Companies like to hire failed entrepreneurs
Failed business ideas as an incentive to keep going
Self-employment failed: learnings as a bonus
In fact, things rarely go perfectly in life. Setbacks are the order of the day when setting up a business. The question then is: as a start-up entrepreneur, can you deal with defeat? And are you ready to learn from your mistakes to do better next time? Experienced founders advise you not to bury your head in the sand, but to keep an eye on the goal of your business start-up.
In the economic metropolises of the world, it is mainly the ultimate successes who make a name for themselves, who after (a few) years turned their start-up into an entire empire. But did you know that even Bill Gates failed at the beginning of his career? His first start-up or business idea actually only brought him losses. A fall from a great height, but in the end he founded Microsoft and made it a success. Obviously, Gates did not see his failed business ideas as a flaw, but learned from his mistakes and kept working. You should too bolster!
Regular statistics, e.g. those of the KfW Start-Up Monitor, show how difficult the path to self-employment can be. After around four to five years, only one of the ten start-ups in Germany is still in the running, according to the study. The Phenomenon of failure ought to have apparently become salon-capable in the founding world. Nevertheless, the situation of failed start-up ideas is dealt with very differently in different cultures.
Of course, like every entrepreneur who has failed in his self-employment, you should first illuminate the reasons for it. However, it is just as important that you access the Consequences of your failed business start-up look. In this context, what matters most is your own attitude towards failure. Sometimes the comparison to other young entrepreneurs, start-ups or corporate ventures helps to make you aware of your own attitude.
You can find out how others flopped in front of you and still didn't give up in the Lexware podcast "Flopcast". Tell there German founder their very personal stories, at which point in their founding process problems arose that ultimately made their independence fail. Benefit from their experiences and above all learn why failure can be helpful!
Common mistakes when starting up
Startups come and go. The reasons for this seem to be diverse. Some failed business ideas, such as the founder of "Bloomy Day" celebrated by Franziska von Hardenberg, went bankrupt after a whirlwind start. Sometimes it is up to the people in the team or the composition of the team. Other self-employed fail because the business model was not mature or the market was too small. Founders can run out of money or investors may withdraw. Despite a supposedly good business model, you can fail because you could not implement your ideas quickly enough with a view to the limits of financing.
Those affected, such as Max Levchin, co-founder of PayPal, often only identify the following typical mistakes when starting up when it is too late:
- There is no market: Founders often do not take the time to realistically examine the market potential with a view to their own business idea.
- The product or service is not mature: In retrospect, production and costing turn out to be difficult or too expensive. Customers don't buy.
- Unique selling point is missing: Too many competitors in a specific area overtake the founder.
- Financial planning shows shortcomings: Liquidity planning and the important fundamentals of accounting are often neglected by those responsible.
- The founding team does not pursue the same goals: Disagreement and problems in communication lead to wrong decisions and delays.
Check business idea
Founders like you who are zealously preparing for their own business or, in the worst case, have already failed, should examine their business idea intensively when it comes to a new one. So invest enough time in the early bird phase if you want your self-employed work to be successful in the long term. Always question whether the planned product or service is actually in the interests of customers or a suitable market. Find suitable colleagues and put together a team of experts who pursue the same goals on an equal footing. Take advantage of advice and experience from professionals, attend founding seminars and build a network!
Business start-up failed: blemish or opportunity?
In retrospect, mistakes when starting a business often cost you dearly. In the worst case, you will lose money because your independence has failed. First of all, this is frustrating and may give you a boost great fear of the future. Maybe you are embarrassed about your failure in front of friends or you worry about the negative impact on your résumé. Therefore, some of the failed founders decide to return to the supposedly safe haven of employment.
By the way: If you believe surveys, then this is Germany’s start-up rate is comparatively lower than e.g. in countries like the USA or Canada. You can find out why this is so in the video "Chasing the Spirit" below. It seems as if Germany lacks a positive culture of mistakes. According to experts, this is expressed in a rather low start-up rate: According to this, around 80 percent of Germans decide against self-employment as a professional option. And that although the conditions for founders in Germany are rated as very good.
There are the following offers for founders like you:
- State funding
- Numerous funding programs
- Support from guarantee and development banks
- Start-up seminars and start-up competitions
- Advice from networks, professional associations and start-up fairs
- BAFA funding from the federal government
You see, failed start-up projects are not a basic task, you are by no means alone afterwards. It just comes down to getting up again. So take advantage your mistakes as an incentive. Carrying on after failure shows whether you are an entrepreneur!
Why failure can be a bonus
It is primarily your own view of how you want to evaluate your failed business ideas. You can do everything under the carpet sweep and bury your dream. The alternative is that you analyze your mistakes, get expert advice, adjust your business plan and start again. Perhaps you would like to draw up another business plan online? Then use the free tool from LEXROCKET to support you!
Who such a more relaxed Dealing with failures succeeds, does not take its failure personally, but regards it as a necessary step within a learning process. Afterwards you will no longer make mistakes!
Experts estimate that the average Success rate a second attempt as a self-employed person is unusually high. So learn from the pros.
Self-employment failed: what about unemployment benefits?
Would you like to become self-employed and would you like to know in advance whether you are entitled to unemployment benefits as a self-employed person? In principle, this question must be answered in the negative. The compulsory insurance after commercial social security law (GSVG) does not provide for unemployment insurance for entrepreneurs.
However, there are two exceptions that justify entitlement to unemployment benefit:
- Unemployment benefits can be claimed if you were employed before you became self-employed and made contributions to unemployment insurance during that time.
- You are entitled to unemployment benefit if you took out voluntary unemployment insurance after January 1, 2009.
Important: If you have been employed for less than five years, you will continue to be entitled to unemployment benefit for five years. If you were employed for more than five years before starting your own business, you are entitled to do so unlimited entitlement towards unemployment benefits.
Since January 2009, self-employed entrepreneurs have been able to take out voluntary unemployment insurance. This decision is binding for eight years. The self-employed can choose the amount of the monthly contributions. Simply find out more from the social security office for commercial enterprises. There you will receive the applications for voluntary unemployment insurance.
Self-employment and unemployment benefit II
If your income or assets are not enough to support yourself, you are considered to be in need of help and can apply for unemployment benefit II - known as Harz IV. That also applies to Self-employed people who have failed with their business ideas or whose profits are insufficient to make a living from. In order to receive unemployment benefit II, you do not have to give up your self-employment. When submitting an application, the Employment Agency takes the following into account when calculating the standard benefit:
- your net profit
- your assets, including insurance, real estate, etc.
- Deduction of an employed person's allowance
If you are entitled to benefits and receive unemployment benefit II, you can Earn an additional 165 euros through freelance work. The employment agency will deduct a higher profit from your unemployment benefit. You also have to be cooperative and accept job offers that have been placed!
Conclusion: Failure is an indispensable factor for success, says e.g. the German economist Lars P. Feld. According to his definition, a market economy works in which protagonists sometimes fail with their start-up ideas and profit from the learning effects. So if you don't dare, you won't win either!
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